Have we hit the bottom yet?

No one knows when we hit the bottom or when we hit the top. The only thing that we do know is that there are certain indicators which tell when that bell is likely to ring. The graph at left would give you some degree of comfort in where we are in the interest rate cycle which is a good indictor of when we should be buying or selling in the property market.

We now have labour availability and soft pricing. Interest rates have dropped from 10.95% floating to 6.4% and it will only do one or possibly two more .5% drops which would suggest that we are at or near the bottom of this interest rate cycle. The characteristics of a rising interest rate market are on the right hand side and when you see these leading indicators you know that the economy is in a recovery model. All the characteristics of the left hand side of the graph are evident now. As an investor the property market is going to be a favoured option for astute investors who are looking for a better than 4% return from fixed interest funds and who are reluctant.

We are now able to offer a property investment service with stock selections provided by Aurum Property Systems. If you are looking for cashflow positive investments in brand new residential property in prime subdivisions then look no further. Aurum can demonstrate to investors with a salary of $60,000 or more and an equity in their own home of $150,000 or more or a deposit of 10% in cash, how they can build a four-bedroom, two living area executive investment property (stand alone residential home) in most areas in New Zealand for between $450,000 and $470,000 with no money required to be put in by the investor and can assure (not guaranteed) the investor a $400 plus per week minimum rental. The programme will self fund between the rent and the tax deductions without considering any potential capital gain.